Shell reconsiders position over UK oil field investment
Oil and gas giant Shell is reconsidering its recent decision to pull investment from a large new UK oil field.
In December, Shell said the economic case - along with possible regulatory delays - meant it was withdrawing from the Cambo oil field, which is located 75 miles off the west coast of Shetland, the BBC reported.
At the time the price of crude oil was under $70 (€64) a barrel.
It has since touched double that price and has consistently been over $100 (€91) as prices have become increasingly volatile after Russia’s invasion of Ukraine.
The desire to reduce European dependence on Russian exports has also made the UK government willing to fast track investment in domestic fossil fuels.
Shell has not yet sold its interests in the field.
Shell has resubmitted an application to develop the Jackdaw North Sea gas field - off the east coast of Scotland - having had it turned down in October by environmental regulators.
The company said it had modified the chemical processes involved in the gas extraction to meet regulatory requirements.
The UK government said investment decisions are a commercial matter for the companies involved, but it remains committed to the domestic offshore oil and gas sector as the UK transitions to net zero greenhouse gas emissions.
In December, Shell said the economic case - along with possible regulatory delays - meant it was withdrawing from the Cambo oil field, which is located 75 miles off the west coast of Shetland, the BBC reported.
At the time the price of crude oil was under $70 (€64) a barrel.
It has since touched double that price and has consistently been over $100 (€91) as prices have become increasingly volatile after Russia’s invasion of Ukraine.
The desire to reduce European dependence on Russian exports has also made the UK government willing to fast track investment in domestic fossil fuels.
Shell has not yet sold its interests in the field.
Shell has resubmitted an application to develop the Jackdaw North Sea gas field - off the east coast of Scotland - having had it turned down in October by environmental regulators.
The company said it had modified the chemical processes involved in the gas extraction to meet regulatory requirements.
The UK government said investment decisions are a commercial matter for the companies involved, but it remains committed to the domestic offshore oil and gas sector as the UK transitions to net zero greenhouse gas emissions.
